As we head into the end of August and summer vacations start to wind down, the fall Toronto real estate market starts to ramp up. New listings start hitting the market more frequently, and home buyers resume their house hunt. With rumours swirling of a fourth wave of Covid19, what effects will this have on the economy and the Toronto real estate market this fall?

Fall in Toronto is the second busiest season in real estate, spring being the first. The fall market typically lasts from early September to late November, taking a seasonal downturn in December. By the 3rd week of August, we see a good number of new listings popping up, days on market shorten and buying activity picks up. This is also the time we start seeing a more regular offer day strategy. A home selling strategy where an offer date it set for all interested parties to submit their offers on the same day. This is combined with a strategic low pricing strategy to attract multiple bidders. While in slow periods, like summer and winter, we often see a combination of listing strategies. Pricing strategically low and reviewing offers on a set date or pricing at market value or a bit higher with offers accepted at anytime.

Recently we’ve had many discussions with our colleague realtors and mortgage brokers – who are often the first point of contact for buyers and sellers. These check-ins and discussions are very important to help us analyze local activity and get a sense of what they are hearing from clients. A buyer’s confidence in the market and their eagerness to become homeowners, will forever drive the Toronto real estate market. For the foreseeable future the demand for single family homes in Toronto will surpass the supply.

The summer months have slowed our industry down for sure. As restrictions lifted, people fled the city and many put their real estate plans on hold. Summer pre-approvals have been down significantly and we are seeing a more exaggerated seasonal low. There are fewer buyers actively shopping for homes and less homes for them to choose from. The buyers who have been actively shopping for homes during the summer months, are being more selective and less likely to rush a purchase. We were expecting all of this!

When we look at single family freehold homes in desirable Toronto neighbourhoods under $1,300,000, we are seeing fewer offers, but small fluctuations in price.  Even with market slow downs, this price point has the largest pool of buyers. However, higher priced single family homes have definitely seen a reduction in buyers and offers as early as June, when buyer fatigue kicked in. At a higher price point, the buyer is often a move up buyer, swapping a condo or smaller house for a larger home. Occasionally, it is the reverse, downsizing to a condo or smaller house. This buyer needs to sell their existing property in order to afford the new one, and for now they are enjoying the summer and waiting for market conditions to improve. The move-up buyer is often more selective. With fewer properties to choose from in the slower months, this type of buyer is on pause until they are presented with more choice.

We think ultimately the robust seller’s market will continue this fall. We might not see a buying frenzy as we did in spring 2021, but we expect to see an increase in buyer activity. This will always translate into more offers and higher sold prices. It’s nearly impossible to time market peaks perfectly. What we experienced in the early months this year may not happen again this fall or in the near future, who knows? Currently, buyers are being more cautious, yet still feeling good about investing in the Toronto real estate market. With the fourth wave of Covid 19 fast approaching, the mood still remains more relaxed. We are more prepared for dealing with it and, as before, the Toronto real estate market will most likely return to a seasonal high.

The best preparation when buying or selling in any market is arming yourself with the knowledge to make educated decisions.

If you already own a home and are doing a house swap, upsizing or downsizing, buying and selling in the same market has never been more important. Your number one goal is to avoid any market fluctuations on either of these transactions. Your new home purchase and the sale of your existing one, must be done simultaneously and both require serious planning and prep work. We can’t stress enough the importance of an experienced realtor during this process.  Someone who understands the intricacies of how to successfully swap homes, while also ensuring a seamless client experience.

Get moving on things as soon as possible. This includes financing pre-approvals (they are taking much longer to organize these days), researching neighbourhoods and past sales, so you are ready and know what to expect during your home search. New listings will start coming to market by the end of August. Hire a realtor as soon as possible who can help you get your ducks in a row.

Get your home ready for sale. Ensure you are in tip-top shape to list your home at the drop of a hat once the fall market is at its peak.  This ensures you get the most out of your sale. Hire a realtor early and take advantage of their services to help you get ready. We’ve said this before and we’ll say it again, fail to prepare, prepare to fail.

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